in the table for problem 4. 6. (14 points) Lucy's Lasagna is a price taker that has the costs shown in the table. Output Total cost a. If lasagna sells for $7.50 a plate, what is Lucy's profit- (plates per hour) (dollars per maximizing output? hour) b. What is Lucy's shutdown point? 5 20 c. Over what price range will Lucy leave the lasagna industry? 26 UI AWN - O d. Over what price range will other firms with costs identical to 35 Lucy's enter the industry? 46 59 e. What is the price of lasagna in the long run? 7. (10 points) The local Hair Cuttery is a beauty parlor / hair cut establishment operating in a monopolistically competitive industry in longrun equilibrium. The manager notes that each day, not all of the chairs in the establishment are full. One option would be to lower the price of a haircut which bring in more customers and lower average total cost. Draw a graph showing the demand curve, marginal revenue curve, and average total cost. Then, on the same diagram, show what would happen if the Hair Cuttery were to lower the price that it operates to the minimum-cost output. Should the Hair Cuttery lower its price? 8. (8 points) The Pizza Palace operates in monopolistic competition. When the Pizza Palace first opened it was one of the only pizza parlors in Windsor and made a profit. a. Draw a graph to illustrate this situation. b. Draw a second graph to show what happened in the long run